If you are planning a trip abroad, you will need to plan for your currency exchange. It is essential that you have the local form of currency on hand! Of course, you will want to save money on your foreign exchange as well and be sure not to overpay. Use these 5 money saving tips to help with your currency exchange planning.
While your first instinct may be to head to your bank to exchange your cash, this may not be the most economical solution. There are many online currency exchange sites that can compare different exchange rate fees and direct you to the best deals. Most of them use the commonwealth bank exchange rates in order to calculate your transaction, just like larger banks do! With so many places to convert your currency online, the competition is high which means sites are likely to lower their fees in order to attract your business. So, head online and compare your exchange rates and be directed to the best deals possible!
Try A Currency Exchange Card
If you are wary of carrying a lot of cash on your trip, consider loading your currency onto a travel card. Use a reputable lender to exchange your cash and have the new currency loaded onto a prepaid card which you can then use like a credit card. However, these travel cards are more secure than a credit card and have no transaction fees. You simply get great exchange rates and load up the card with the amount you’d like- no other hidden charges! You can also manage your card balance online and reload the card at any time, getting more of the currency you need at a great rate.
Whether you would like to have physical cash while traveling or if you like the option of having a travel card to use and manage online, it is a good idea to make a currency exchange plan before your trip. Once you are abroad, you may have limited options as to where you can exchange your currency. The choices you do have may also have higher exchange rates which can cost you money. As part of your trip planning, be sure to consider currency exchange and start taking action before you go.
Check The Rates
Before making your currency exchange, take the time to check the exchange rates over a few days (if possible). See if the rates are trending upward or downward and make your actual exchange when the rates are ideal. A little extra planning and research can save you a few dollars and makes you a savvy traveler!
Exchange What You Need
One thing you may not think about when converting your currency is that you will have to exchange any extra cashback at the end of your trip. This can cost you more fees since you have to pay once again for a second exchange. Only exchange the amount that you need, especially if you are taking the money out in physical cash. If you are unsure exactly how much to exchange, definitely consider using a reloadable travel card which will enable you to directly add a little more to the card as needed.